The new alternative applied by almost 50% of the group leaves room for savings and luxury spending even in challenging times.
With the rise in prices and the prevalent state of the economy, many are finding it hard to make a living. Even affording basic necessities has become a luxury to many, all thanks to inflation and financial crises worldwide. With individuals having to struggle despite good jobs, young people who are now stepping into the job market are finding it harder to get by. With times more challenging than ever, the painstaking concept of having to move out adds to their financial burdens and takes a big chunk of their earnings. However, Quartz brought up several statistics that point to the new alternative young Americans have come up with.
People between 18 and 30 are moving back in with their parents to beat the frustrating challenge of having to afford rent and living elsewhere. There has been a spike in young people moving with their folks ever since the pandemic started. The outlet combined the results of various surveys and shared that 49.5% of the young American population was living with at least one parent. The major reason back then was the spread of the outbreak, along with people getting laid off or having to discontinue work due to the lockdown temporarily. There have been several factors that have caused people to continue to move back with their parents. However, the main one remains the expensive state of the economy.
The new work-from-home scenario has also greatly contributed to the same. Morgan Stanly, a banking institute, shared that young Americans are opting for this alternative to be able to afford luxuries by cutting out expenses on daily necessities, especially shark amounts like rent. The institute’s Edouard Aubin said, “One of the key demographic trends in the US (and the broader Western market) has been the rising number of young adults living with their parents, driven by financial concerns (i.e., rental costs) as well as other sociological factors (e.g., higher penetration of higher education and increasingly delayed age for marriage).”
Property Management's survey revealed that the majority of people are living with their parents over their own apartments or rent for the simple reason of saving money. There is no doubt food, shelter and other basic amenities take up most of the young people’s incomes or barely get them through. In the bargain, travel, interests, hobbies and other luxuries remain out of the question. This new model of moving in with parents seems to be the smarter choice to afford a luxury lifestyle.
It’s not a complete loss for parents. Parents are charging rent at certain costs, but it is undoubtedly more economically wise and financially less straining for young adults. Rent.com shared statistics revealing that $1,966 was the median monthly price for renting, whereas parents charge $500 and below. The article mentioned that parents are likely to charge way less rent than the usual rate, leaving enough for people to save and spend on miscellaneous things.
While the state of the economy does not seem to show much good news, moving in with parents seems like a financially smart decision. It also provides scope for parents and children to spend time together more efficiently.